|
10/2S41i8ce&Commerce>Print>Counting construction jobs proves difficult
<br /> The situation raises questions about accountability
<br /> because the whole point of the program was to create
<br /> construction jobs, according to state Sen. James
<br /> Metzen, DFL-South St. Paul, who helped author the
<br /> 2010 bill that created the program.
<br /> "There ought to be a better accountability. First, what
<br /> are they doing with the money? I guess we know that. iid the
<br /> But how many jobs are you creating with this — 4, ,,,`
<br /> construction jobs and permanent jobs?" Metzen said. *
<br /> Another bill author, Senate Minority Leader Thomas IIM4
<br /> "Bakk, DFL-Cook, also thinks taxpayers should care.
<br /> "When you reduce someone's tax burden, it raises _
<br /> everyone else's," Bakk said. 4
<br /> But Bakk says he and other lawmakers decided not to
<br /> ate,
<br /> require job counting because local property tax dollars
<br /> — not state dollars — were being spent. Bakk thought 41k,
<br /> accountability should be at the local level.
<br /> "It's local in that cities don't have to do it, and if they , q
<br /> do, they pay for it themselves," Bakk said. � '
<br /> r3
<br /> During checks with each of the 35 cities or entities,
<br /> - �: �
<br /> Finance &Commerce found that the legislation appears
<br /> to have created 2,199 construction jobs in 14 cities and construction,jobs.
<br /> is creating or retaining 7,681 permanent jobs in 24. But ?fj,,,,,c,j,
<br /> more than half the permanent jobs are simply moving t,° I
<br /> from Target's downtown Minneapolis headquarters to -� - -
<br /> its northern campus in Brooklyn Park. ONSTRUCTION JOBs c
<br /> For the cities keeping track, it cost an average of .. t .ti .,r j ,-,,,,,
<br /> $8,213.53 in property taxes per construction job and !"°
<br /> $3,761.17 per permanent job, according to F&C's
<br /> analysis. Exclude the Target project in Brooklyn Park,
<br /> and the average cost was $6,979.52 per permanent � � � �
<br /> job. -'-. i . .
<br /> t t
<br /> Even whether such averages hold up is an issue „��„� � ,,, ,� � ,
<br /> because cities that did count did not always go back to �q
<br /> verify. A popular argument among local officials was PER, N
<br /> that they could see with their own eyes that
<br /> construction was happening, so why formally check? ftt �
<br /> Own Kitt -O
<br /> Regina Harris, Bloomington's Housing and ".`ry
<br /> Redevelopment Authority administrator, estimates Graphics: Tim Montgomery
<br /> Frana Construction's work on the 212-apartment, 22-
<br /> townhome Genesee Drolect brought 250 construction
<br /> jobs to the site at the southeast corner of Penn Avenue South and American Boulevard. She
<br /> also anticipates 60 full-time jobs once the entire project is complete.
<br /> Harris, however, argued that checking back on the jobs numbers was unneeded and that the
<br /> legislation did not require it.
<br /> "I just take the jobs bill for what it was, which was please go out there and create jobs, and
<br /> they didn't say how many," Harris said.
<br /> Others counted permanent jobs, but not construction jobs. In the case of the St. Paul Port
<br /> Authority, officials decided that counting and double-checking permanent jobs was much more
<br /> important.
<br /> "The reason to do the construction in the first place is to support long-term business growth.
<br /> This isn't construction for construction's sake," said St. Paul Port Authority President Louis
<br /> Jambois.
<br /> The Port Authority steered $2.3 million toward two projects worth $55.7 million and claims to
<br /> 2/3
<br />
|